How to record a billable expense using QBO Essentials version

What you buy for the client is an expense
What the client pays you is income

So create those accounts, billable expense and billable income, and post the appropriate transaction to the account it applies to

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@My AARP Medicare wrote:

I have read some of the answers to this question but it is still not clear on how to record this entry using QBO Essentials version.

 

I bill the client for software with a slight mark-up.  What account do I use for that?

Then I need to pay the vendor for the software.  How should that be recorded?

The difference between what I bill the client and what I pay the vendor is my commission.

I have created a "Billable Expense Income" account, but don't know how to use it.

Also, I have created a "product/service" account which also links to the "Billable Expense Income" account.

 

Now I need the step-by-step instructions on how to record this whole scenario.

 

Please help!

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Go to the Accounting tab and select Chart of Accounts.
Click New and choose Income as the Account Type.
You can name it as a Billable Expense Income. Enter all the details needed, hit Save and Close.

Thanks, I did that already

So basically the "billable exp" and "billable income" should wash each other out?  Right?  I also did a JE to debit the billable income and credit commission. 

Hi there, enablesol. 

Yes, you're right. The billable expenses are any revenue generated in relation to purchases a business makes on behalf of a client or customer. 

For other related articles you can use in the future, you may also refer to this helpful link: Income and expenses for QuickBooks Online.

If you have any other concerns, feedback, or questions, don't hesitate and come back to the Community. I'm always here to help you. Have a great day.